Sheep Industry News June 2024

Market Report

TYLER W. COZZENS, PH.D. Livestock Marketing Information Center

Lower Production & Higher Prices

S heep and lamb slaughter – federally inspected – moved sea sonally lower in April following the peak level of more than 44,000 head in mid-March. Through April and into the first part of May, weekly sheep and lamb slaughter has been averaging just under 36,000 head per week. Comparison to a year ago is a little tricky due to the timing of the Easter holiday, which was earlier than in 2023. As a result, some weeks in April were lower than last year, but other weeks were higher. Looking at weekly sheep and lamb slaughter levels on a year to-date basis shows that through the first week of May, slaughter levels are tracking marginally higher – less than 1 percent – than during the same period in 2023. Although slaughter levels are tracking slightly higher, dressed weights have been averaging about 2 percent – 1.3 pounds – lower than the same four-month period in 2023. The lower dressed weights have more than offset the slightly higher slaughter levels leading to lamb and mutton production tracking about 1 percent below the same period of last year. Imports in March were 27.2 million pounds, up 8 percent or 2 million pounds from last year and the highest total in two years. Lamb imports through the first quarter of 2024 totaled 71.2 mil lion pounds, a 20-percent or 11.9 million pound increase from the first quarter of 2023. During the first quarter, 75 percent or 52.7 million pounds of total imports were from Australia, up 24 percent or 10.1 million pounds from last year. The remaining 25 percent of lamb imports were from New Zealand with a total of 17.5 million pounds, an increase of 13 percent or 2 million pounds from the first quarter of 2023. Although production in 2024 started marginally lower than a year ago and while imports posted a larger increase during the first quarter of the year, there does not appear to be a buildup of lamb and mutton in cold storage. In March, lamb and mutton in cold storage was 22.4 million pounds, which was 12 percent or 2.4 mil lion pounds above February. But compared to a year ago, stocks are down 13 percent or 3.4 million pounds and 24 percent below the five-year average. Stock levels are well below typical levels and will likely remain low, assuming demand remains as strong as it has, and production continues to track below year-ago levels. PRICES TRACK HIGHER Prices for feeder lambs, fed lambs and lamb carcass values

continue to hold strong in April and track above year ago levels. Feeder lamb prices – 60 to 90 lbs., three-market average in Colo., S.D. and Texas – have moved seasonally lower from the weekly av erage price of $308 per cwt. in March to $284 per cwt. in April for a decline of about 8 percent. Compared to a year ago, feeder lamb prices in April were – on average – about 35 percent higher than last year and 25 percent above the five-year average. Fed lamb prices – national negotiated live – have been mov ing seasonally higher since the start of the year. Prices were $185 per cwt. at the start of the year and by the first part of May, the prices were over $210 per cwt. for an increase of 15 percent in four months. In April, weekly fed lamb prices averaged over $210 per cwt., which was 34 percent above last year and 22 percent higher than the five-year average.

The lamb cutout value has been moving seasonally higher and tracking well above last year’s levels. In April, the lamb cutout value averaged in the mid to upper-$470 per cwt. range but had slipped lower at the start of May. Compared to a year ago, the lamb cutout value in April was 7 percent – $30 per cwt. – higher than in 2023 and 16 percent – $65 per cwt. – above the five-year aver age. Support for the lamb cutout value has come from gains in the shoulder, loin and leg, which have gained 15 percent, 11 percent and 18 percent, respectively, from last year to $4.07, $7 and $5.25 per pound in April. The rack was just below $11 per pound in April, down 4 percent from the previous year. SHEEP & LAMB OUTLOOK The Livestock Marketing Information Center is forecasting

6 • Sheep Industry News • sheepusa.org